“Guestology” P r e s e n t e d b y J o h n N o b l e M a s i

P r e s i d e n t H o s p i t a l i t y P e r f o r m a n c e P a r t n e r s

Today’s Agenda

• Question: What do we provide our guests?

• What does Starbucks do to make them successful?

• Customers vs. Guests – Product

– Atmosphere

– Service

• How can we quantify the impact of improving?

• Take action!

What do we provide our guests?

What makes Starbucks so successful?

• True Passion

• Broad appeal

• Rituals

What makes Starbucks so successful?

Making Customers feel more like Guests!! • Emotional Connection- Their mission is “to inspire and

nurture the human spirit – one person, one cup and one neighborhood at a time.”

“The Third Place” – Personalization – Warm Colors – Comfortable seating – Organic art – Funky music – Convenience-make things easy – Free Wi-Fi…embracing technology

Making Customers Feel more like Guests in these Key areas

Product

Atmosphere

Service Delivery

Product

Product

Chocomize

Product – Prepare their favorites-Preferences via Menu cycles/choices

balanced with seasonal offers

– Guest names on cups and "to go" orders

– Personalize/Customize

– Signature or "Secret" Items

– Surveys-Malcolm Gladwell-Prego

– Negatives to Positives

– Authentic Ethnic

Atmosphere Temperature

• OSHA: 68-76 degrees F

• Productivity studies: 69.8-71.6 degrees F

• Guests prefer?

Atmosphere Colors, Sounds, and Lights

– Reds and Yellows vs Neutral Earth tones

– Seasonal décor

– Ambient vs Bright vs Dim lights

– Slow Music/Quiet-Buy and spend more vs.

– Faster Music/Noisy-Spend less/Quicker turns

1.Lounge 2.Classical 3.Blues

Service Delivery

Service Delivery Gathering Guest Intelligence

– Develop an “App” • Starbucks 2009, 20% of

purchases, Over 9M transactions weekly

– Birthdays

– Loyalty programs

– Habits and Past purchases

– Survey and take action

– Enhance efficiency and accuracy

– Beacon/Proximity technology

Service Delivery Adjusting Our Delivery itself

– Name Tags or Embroidered uniforms for team

– Focus on First Impression(smiles, eye contact, tone), drop script, use guest names

– Ensure your team is happy

– Touch Tables!

– Pleasant Surprises

• Mint study in Journal of Applied Psychology- Sweetening the Till: The Use of Candy to Increase Restaurant Tipping

– 3%

– 14%

– 21%

The Value of Loyalty 7 Customer Loyalty Statistics

• It costs 500% more to acquire new customers than it does to keep current ones.

• The cost of bringing a new customer up to the same level of profitability as an old one is up to 16x more.

• 82% of companies agree that retention is cheaper to execute than acquisition.

• Lowering your customer churn rate by 5% can increase your profitability by 25-125%.

• On average, loyal customers are worth up to 10x as much as their first purchase.

• The average repeat customer spends 67% more in their 31st to 36th months of their relationship with a business than in months 0-6.

• 1% of a retail website’s users generate as much as 40% of its revenue. http://www.socialannex.com/blog/2016/02/0

5/ultimate-customer-loyalty-statistics-2016

My Challenge to You! TAKE ACTION!

What will you do moving forward from today?

Focus on your People • TRAIN, TRAIN, and TRAIN some

more…with Passion AND with the right Trainer

Thank you and Best Wishes for Improved

Guest Service!

Remember to connect with me on

or visit my website for more information on

training and other services

www.hppus.com